Rep. Kristi Noem today joined the House Ways & Means Committee in approving the Tax Cuts and Jobs Act, setting the stage for the tax reform bill to be considered by the full House in the coming weeks. The legislation, which has found support from many South Dakotans, is expected to increase wages by 3.1 percent, add nearly 1 million jobs, and raise after-tax incomes by thousands of dollars, according to the non-partisan Tax Foundation. Meanwhile, the Joint Committee on Taxation found there would be “a tax benefit to all income categories,” and the Tax Policy Center found “the legislation would reduce taxes on average for all income groups.”

“It is the privilege of a lifetime to go through this tax reform plan line by line and fight for South Dakota priorities,” said Noem. “Today is an exciting day. This is the most significant step we’ve taken toward comprehensive tax reform in more than 30 years, and I’m proud of what we’ve put forward. It’s a plan that finally respects and rewards hard work. It delivers much lower tax rates and simplifies things enough so most people won’t need an army of accountants to pay their taxes or build their business. We’re making sure everyone starts playing by the same rules and can experience the benefits of higher wages and increased job creation. I look forward to continuing this debate in the full House and remain optimistic about what this plan can do for the hardworking people of South Dakota.”



Simplifies the tax code so an individual or family can file their taxes on a form as simple as a postcard.


Significantly lowers individual tax rates to Zero, 12%, 25% and 35%, while also nearly doubling the standard deduction to $24,000 for married couples and $12,000 for single filers. High-income Americans will maintain the 39.6% rate.

  • 0%: Married couples making less than $24,000 / Single filers making less than $12,000 (the increased standard deduction protects these families from taxation)
  • 12%: Married couples making $24,000-$90,000 / Single filers making $12,000-$45,000
  • 25%: Married couples making $90,000-$260,000 / Single filers making $45,000-$200,000
  • 35%: Married couples making $260,000-$1,000,000 / Single filers making $200,000-$500,000
  • 39.6%: Married couples making more than $1,000,000 / Single filers making more than $500,000

Provides unprecedented support for families:

  • Increases the Child Tax Credit to $1,600 per child (60% larger than under current policy).
  • Eliminates the “marriage penalty.”
  • Creates a new Family Flexibility Credit, which provides a credit of $300 for each parent and non-child dependent.
  • Preserves the Child and Dependent Care Tax Credit (also known as the Child Care Credit) to better support working parents.
  • Allows unborn children to be named beneficiaries of 529 education savings plans

Phases in full and permanent Death Tax Repeal by doubling the Death Tax exemption levels for the first seven years and then fully repealing the Death Tax by 2025.

Preserves and strengthens the Earned Income Tax Credit with provisions to stop widely reported fraud.

Gives support at important milestones in life:

  • Preserves the Home Mortgage Interest Deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000.
  • Retains popular retirement savings options, such as the 401(k)s and IRAs.
  • Streamlines higher-education benefits.

Excludes the Indian Health Service’s Student Loan Repayment program from tax to help in recruiting. It’s based on Noem’s 2016 legislation.

Continues the deduction for charitable contributions.

Allows businesses to immediately write off the full cost of new equipment, which is critical for South Dakota’s agriculture community.

Creates opportunities to create more jobs and raise wages.

  • Creates a separate and historically low small business tax rate.
  • Lowers the corporate tax rate to a globally competitive 20%.


Noem, the first South Dakotan in history to serve on the House Ways & Means Committee, has played a pivotal role in drafting the legislation that advanced today. In the process, Noem met with hundreds of South Dakotans to discuss the plan – both in the state and in her Washington, D.C. office. She also participated in more than a dozen formal Ways and Means Committee hearings on tax reform and brought South Dakota farmer Scott VanderWal to the table to testify on tax reform’s impact on agriculture. All in all, the House Ways and Means Committee has been working on this proposal for more than six years, holding more than 40 public hearings since 2011. 

You can also find examples of how certain taxpayers would be impacted by tax reform here as well as statements from South Dakotans about the plan here.

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